Stocks Pause After Record Run as Geopolitical Uncertainty Triggers Tech Pullback

The stock market opened the week on a softer footing, with modest profit-taking in mega-cap and technology stocks halting last week’s record-setting momentum. The S&P 500 (-0.2%), Nasdaq Composite (-0.3%), and Dow Jones Industrial Average (flat) spent most of the session drifting just below unchanged levels.

Early weakness followed weekend headlines suggesting delays in the next round of U.S.–Iran negotiations. Sentiment deteriorated further late in the morning after Donald Trump indicated it was “highly unlikely” the current ceasefire would be extended without a deal this week. However, equities stabilized and rebounded from session lows as reports later confirmed that both sides plan to resume talks in Pakistan.

Energy markets reflected the renewed uncertainty. Crude oil futures rose $5.18 (+6.2%) to $89.40 per barrel. While the move pressured certain equity segments—particularly recent leaders—prices remained below the $90 threshold, suggesting relative stability despite geopolitical risks.

Sector performance was mixed, with weakness in growth-heavy areas offsetting pockets of strength elsewhere. The communication services sector (-1.4%) led the downside, dragged lower by declines in Meta Platforms, Alphabet, and Netflix, the latter continuing to face selling pressure following weak forward guidance.

The consumer discretionary sector (-0.7%) also lagged, with Tesla retreating ahead of its earnings release and travel-related stocks weakening alongside higher oil prices.

In contrast, the information technology sector managed to recover from early losses to finish flat, aided by a steady afternoon rebound. While Intel lagged, the PHLX Semiconductor Index still posted a modest gain. Strength in hardware names such as Hewlett Packard Enterprise and Dell Technologies, along with continued momentum in software—reflected in a 1.4% gain for the iShares GS Software ETF—helped stabilize the sector. Apple stood out among mega-cap names with a solid advance.

The late-session recovery in tech helped the Vanguard Mega Cap Growth ETF trim losses, though it still finished slightly lower. Notably, the Nasdaq’s 13-session winning streak came to an end, marking a pause after an extended rally.

Beneath the surface, market breadth was more constructive. Five S&P 500 sectors posted gains, led by the materials sector (+0.6%), where Steel Dynamics outperformed ahead of earnings. The financials sector (+0.3%) also advanced on broad-based strength.

This broader participation was reflected in the outperformance of the S&P 500 Equal Weighted Index (+0.3%) relative to the cap-weighted benchmark, suggesting underlying resilience despite headline-driven volatility.

Overall, the session was relatively subdued. While geopolitical uncertainty re-emerged as a short-term risk factor, the market’s muted response indicates that investors still view a more durable ceasefire as the base case.

After a strong run, growth stocks took a modest breather, but the major indices remain within striking distance of record highs. As the week progresses, focus is likely to shift toward earnings season, where forward guidance and profit growth will play a critical role in determining whether the rally can extend further.

Our FTinvest 11 model portfolio gained 0.39% to close at 1,017.33, extending its upward streak and reinforcing momentum after reclaiming the 1,000 level. The portfolio continues to trend higher, moving closer to its all-time high of 1,039.51.

Based on the start-of-year level of 928.18, FTinvest 11 is now up approximately +9.60% year-to-date, reflecting a strong recovery and sustained performance in 2026. The steady advance highlights the portfolio’s resilience and the consistency of its disciplined, value-driven strategy.